Show firm command of the Code and Standards by applying them to professional integrity cases under Standard V, Investment Analysis, Recommendations, and Actions

Standard V asks whether a portfolio decision rests on a reasonable and adequate basis and is communicated honestly. Under V(A), a manager hiring an external sub-adviser or relying on outside research must first examine the provider's process, assumptions and record; a quantitative strategy must be understood and tested, including in stress scenarios beyond its data history, before client money follows it. Under V(B), clients must be told how the investment process works, in outline, and of any material change to it, such as adding leverage or losing a key manager, along with its significant risks and limitations, and the manager must separate fact from opinion. Under V(C), the records supporting each decision belong to the firm and must be kept.